NovWhy Cambodia: 8 reasons investors are looking at this market
Cambodia is rarely the first country on a real estate investment shortlist — and that's exactly why entry points still exist here that are already gone in Dubai or Bali. Below is a breakdown, without the marketing fog, of what really sets this market apart: why prices are in dollars, how a foreigner owns an apartment directly, where interest-free installments come in, and where the line runs between fact and forecast. The decision is yours — we provide the inputs.
1. A dollar economy
The key feature of Cambodia for an investor is its de facto dollarisation. Real estate prices, rent and large transactions are denominated in US dollars, not the local riel. That means the value of your asset and your rental income aren't eroded by the local currency's exchange rate — you enter in dollars and stay in dollars. For anyone diversifying capital outside the rouble zone, this is one of the key arguments.
What dollarisation does not protect you from
Pricing in US dollars reduces exposure to movements in the riel within the transaction, but it does not create liquidity or remove vacancy and resale risk. The World Bank's June 2026 Cambodia Economic Update reports that domestic credit growth slowed to 5.3% in 2025, with weak credit demand linked in part to stress in real estate and construction.
The same report says a highly dollarised system limits the transmission of monetary policy. A dollar price should therefore be treated as a settlement feature, not a promise that value will hold: buyers still need to test the likely resale pool, transfer arrangements, time to exit and cash flow after vacancy and management costs.
2. Direct foreign ownership
Unlike a number of neighbouring countries, Cambodia allows a foreigner to own real estate directly — through strata-title, without nominee structures or local partners. There are two limits, and they're straightforward: you can own an apartment above the ground floor, and the total foreign quota in a building is capped at 70% of the floor area. A foreigner doesn't own land directly, but for buying an apartment in a condominium that's no obstacle. You receive the title in your own name.
Legal market access is not the same as an easy investment exit
A foreign buyer’s ability to acquire an eligible unit makes the market accessible, but it does not determine future liquidity. When assessing Cambodia as a destination, establish what ownership document the buyer should ultimately receive, which future buyers can use the same route and whether foreign-quota constraints narrow the resale pool.
Record three outcomes for the investment decision: an eligible holding structure for the selected asset, an evidenced route to a registered document and a realistic transfer route to the next owner. Where one outcome remains only a project promise, the country may still be attractive, but the unresolved risk should affect the acceptable price or asset choice.
3. A low entry threshold
Entry into the residential market starts from around $40,000 — a real price for an apartment in an under-construction complex with a developer discount. By comparison, a comparable entry in Thailand is around $80,000 and in Dubai from $200,000. A low threshold means Cambodia isn't only for large capital: people come in here with a single apartment as their first foreign asset.
4. 0% developer installments
Interest-free installments are what make the low entry even more accessible. Phnom Penh developers offer installments over 25–45 months at 0%: you pay part on signing the contract and the rest in equal payments during construction, with no bank overpayment. This lets you enter an asset without having the full sum in hand. How the payments are structured across our projects is on a dedicated page about installments in Cambodia.
How to audit an interest-free payment plan
A plan can charge no stated interest and still cost more than a cash purchase. Compare the total contract price with the price available for immediate payment, then add compulsory fees, the handover balance, furnishing requirements and any items excluded from the advertised price.
The SPA should clearly cover each payment trigger, permitted delay, penalties, construction delay, refunds and assignment before title transfer. These clauses reveal both the real financing cost and how difficult it may be to leave the transaction if the buyer's circumstances change.
5. A growing Phnom Penh
Cambodia's capital is the main engine of the market. The country's economy grows by roughly 6% a year (per World Bank data for 2024), and that growth is concentrated in Phnom Penh: new business districts, infrastructure, an inflow of expats and companies. For an investor this means demand for quality housing and offices. Where exactly to buy depends on the district — our breakdown by location is in the guide to Phnom Penh districts.
Follow employment, not GDP alone
The World Bank reports that foreign direct investment reached US$5.1 billion, or 10.1% of GDP, in 2025. About US$3.8 billion went into manufacturing, while construction, real estate and accommodation attracted about US$0.4 billion, signalling a shift away from an economy led mainly by development and tourism.
The report also estimates roughly 401,000 additional formal jobs in 2025. Garment job gains were concentrated in Phnom Penh, Kandal and Svay Rieng, while non-garment gains were spread more widely and Phnom Penh accounted for about one-third of that increase. For a property buyer, employer locations and commuting catchments are therefore more useful than applying national growth figures to every district.
A young population is potential, not an automatic tenant base
The World Bank's June 2026 Cambodia Economic Update puts Cambodia's 2024 population at 17.6 million, with 64% of residents of working age and a median age of about 27 in 2025. It projects the working-age share to peak around 2043.
That age structure supports a long runway for urbanisation and consumption, but property demand depends on jobs, household income, commuting patterns and a unit that fits the intended resident. A city can add young people without producing equal growth in the number of tenants able to pay the rent assumed in an investment model.
6. Rent and rental demand
The market benchmark for rental yield in Phnom Penh is around 6–10% per year in dollars. To be clear: this is a market benchmark, not a guarantee. Actual yield depends on the project, location, management quality and occupancy. Rental demand is driven by expats, staff of international companies and a growing local middle class. Recognisable projects in good districts let more easily — which is why concept and location matter more for a rental strategy than they might seem.
Test rental demand against competing supply
Knight Frank's Cambodia Real Estate Highlights H2 2025 recorded 63,334 existing condominium units in Phnom Penh after another 1,770 units completed, taking supply 9.6% above the level a year earlier. The report described demand as restrained and the market as being in a correction, with price pressure and slow absorption outside the most affordable segment.
That does not mean there is no rental market; it means a citywide yield range is not enough. Gross yield should use achievable annual rent and the full acquisition cost, while net yield must deduct vacancy, service charge, management, repairs, tax and replacement of furniture. Project comparison should also include occupied comparables, typical leasing time, competing units inside the building and nearby projects still due to complete.
7. Infrastructure and the tax regime
The tax burden on an owner in Cambodia is moderate: the annual property tax is 0.1% of value, and the stamp duty on registration is around 4%. Capital gains tax (CGT) is 20%, but its introduction is deferred to 1 January 2027 — a confirmed fact worth factoring into the timing of a deal. All figures are given as reference benchmarks; exact calculations for a specific property come at the transaction stage.
Infrastructure: what's being built in the country
Major transport projects are changing Cambodia's connectivity — this is location context, not a promise of price growth. Below are dated reference points on national infrastructure with sources. We deliberately don't infer growth in value, liquidity or rent from them: infrastructure affects convenience and logistics, but does not guarantee the yield of a specific property.
| Project | Status and date | Context |
|---|---|---|
| Techo International Airport | Opened for Phnom Penh service on 2025-09-09 | New gateway to the capital, ~20 km south of the centre. First phase up to 15m passengers/year per the official airport site (AP cites 13m initial capacity) |
| Phnom Penh – Sihanoukville Expressway | Opened to traffic on 2022-10-01 | High-speed link from the capital to the coast and port. National logistics, not a “travel time” to a specific project |
| Phnom Penh – Bavet Expressway | Under construction (started 2023-06-07, ~48-month plan) | South-eastern trade corridor to the Vietnamese border. Still under construction, not completed |
| Phnom Penh – Siem Reap – Poipet Expressway | Planning / feasibility study (reported in 2023) | Long-term connectivity to the tourist north. Design stage, not construction |
Sources: Techo Airport (official), Khmer Times, AP (2022–2026), checked 2026-07-05. Data is given as location context. An infrastructure project on its own does not mean prices will necessarily rise.
8. A local team on the ground
Buying abroad works only as far as you have someone to rely on in the country. NovAsia runs the deal together with partners in Phnom Penh: they verify the property with the developer, monitor construction progress, send photos and video, and accompany you until you receive the keys. All enquiries go through us first — you deal with one team, not a dozen scattered agents. How the process works is in the how buying works section.
Go deeper
Each point above has its own page — with sources, check dates and an honest note wherever the data is not confirmed.
- The dollarised economy: what it gives a buyer and what it does not protect against
- Why Phnom Penh — how the capital's market differs from the rest of the country.
- The economy and housing prices — where GDP growth connects to apartment values, and where that link breaks.
- Infrastructure tracker — airport, bridges and expressways: what is built and what is still promised.
- Rental demand in Phnom Penh — who rents, and how asking rent differs from achieved rent.
- An investor's visit — what to fit into the trip and what to check before you fly.
Where it doesn't work: honest caveats
Cambodia is not a magic pill. It's a developing market: the investment horizon here is long, liquidity is lower than in mature markets, and guaranteed income and buy-back are terms of the contract with the developer — not a guarantee from NovAsia or the state. Forecasts of value growth remain forecasts. We believe an honest conversation about risks matters more than a pretty picture — so we talk them through before the deal, not after.
Want to understand whether Cambodia fits your goal and budget? Tell us your task — we'll match a project and send an honest calculation that separates "total return" from "net profit".
Contact usTelegramTake the quizFrequently asked questions
Can a foreigner own real estate in Cambodia?
Yes. A foreigner can directly own an apartment above the ground floor under strata-title, within the building's foreign quota (up to 70% of the floor area). A foreigner doesn't own land directly, but for an apartment in a condominium that's no obstacle.
Why are prices in Cambodia in dollars?
Cambodia's economy is effectively dollarised: real estate deals, rent and prices are denominated in US dollars. For an investor this means the value of the asset and the rental income don't depend on the local currency's exchange rate.
What budget can you enter with?
Entry into the residential market starts from around $40,000 for an apartment in an under-construction complex with a discount and interest-free installments. Premium and commercial projects start from $100,000 and up.
What rental yield is there in Phnom Penh?
The benchmark is around 6–10% per year in dollars. This is a market benchmark, not a guarantee: actual yield depends on the project, location, management and occupancy.